Guest Commentary: Gold & Silver Daily Outlook 05.30.2012
Gold and silver resumed their downward trend and declined during yesterday's trading. The disappointing U.S consumer confidence report didn't seem to curb the decline in bullion rates but may have adversely affected energy commodities. Currently precious metals prices are declining. On today's agenda: KOF Economic Barometer, Euro Area Monetary Development, Italian 10 Year Bond Auction, U.S. Pending Home Sales and ECB President Draghi will give a speech.
The chart below shows the normalized rates of these metals during the past couple of weeks (normalized to 100 as of May 15th).
On Today's Agenda
U.S. Pending Home Sales: This report present the changes in pending home sales in the U.S. for April 2012; in the previous report the pending home sales index increased by 4.1% (M-over-M). These data are another indicator for the development in America's real estate market; based on last week's results on housing sales (new and existing) the pending sales may continue to rise.
ECB President Draghi Speaks: The President of the European Central Bank, Mario Draghi will give a speech at European Policy Council in Brussels. If Draghi will refer to the ECB monetary policy vis-à-vis the European debt crisis, this might affect the financial markets;
Precious metals rose during Thursday and Friday but resumed their descent on Tuesday. The ongoing decline in the Euro seems to drag along with it precious metals. If this trend will continue today, it could also adversely affect bullion. The speculation around future of Greece in the EU will likely to keep the Euro weak in the short term. The upcoming U.S pending home sales might slightly and adversely affect bullion and other financial markets if the report will continue to show progress in the housing market. The upcoming EU reports and ECB President Speech might also play a role in the forex and commodities markets during today's trading.
This gold and silver prices outlook was first presents in Trading NRG
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By: Lior Cohen, M.A. in Economics, Commodities Analyst and Blogger at Trading NRG
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